Federal Housing Administration created (1934)
The National Housing Act created the FHA to insure private mortgage loans, spreading the risk of default across the federal government. It made long-term, amortizing, low-down-payment home loans widely available for the first time.
Homeownership expanded rapidly as private lenders gained federal backing.
FHA mortgage insurance became a pillar of US housing finance, and Congress later layered on multifamily insurance programs including Sections 221(d)(4) and 223(f).
The same federal insurance mechanism is now being extended to build-to-rent, a property type HUD had excluded for decades.
